The UK’s Serious Fraud Office (SFO) has charged United Insurance Brokers Limited (UIBL) with failing to prevent international bribery.
Company representatives have been summoned to appear at Westminster Magistrates’ Court in early May to face the charges.
According to the SFO, between October 2013 and March 2016, UIBL’s intermediaries in the United States paid bribes to public officials in Ecuador. These payments were allegedly made in exchange for lucrative reinsurance contracts valued at $38 million.
This case could become a legal milestone—it would be the first time a jury hears an SFO prosecution under the UK’s “failure to prevent bribery” legislation, if it proceeds to a full trial.
UIBL provided reinsurance services, which protect insurers from large or unexpected payouts. These services were sold to Ecuador’s state-owned insurers, which cover public utilities such as water and electricity companies.
UIBL reportedly earned $6.2 million in commission for arranging the contracts. The SFO alleges that $3 million of this was paid to intermediaries, who then used part of the funds to bribe an Ecuadorian official.
Nick Ephgrave QPM, Director of the Serious Fraud Office, said:
“The SFO remains committed to stamping out international bribery wherever it may occur.
British companies have a duty to prevent the harm caused by bribery when doing business at home and abroad, to ensure that the UK remains a safe and fair place to do business”.
UIBL is scheduled to appear in court on Wednesday, 7 May. Photo by Airdrake, Wikimedia commons.